Gold, silver, and platinum reached record highs as year-end liquidity thinned, speculative momentum increased, and markets priced in additional US rate cuts. Geopolitical tensions further fueled the rally, pushing precious metals to unprecedented levels.
Gold Reaches Historic Levels
Spot gold rose 0.6% to $4,504.79 per ounce, touching a record high of $4,530.60, while US gold futures for February delivery climbed 0.7% to $4,535.20. Analysts note that gold has recorded its strongest annual gain since 1979, driven by Federal Reserve policy easing, strong central bank demand, rising ETF holdings, and ongoing de-dollarisation.
Silver Surges Even Higher
Spot silver jumped 3.6% to $74.56 per ounce, reaching an all-time high of $75.14. Year-to-date, silver has soared 158%, outpacing gold’s nearly 72% gain. Structural deficits, critical US mineral status, and robust industrial demand are key factors behind silver’s extraordinary performance.
Platinum and Palladium Climb Sharply
Spot platinum rose 7.8% to $2,393.40 per ounce, hitting an all-time high of $2,429.98, while palladium climbed 5.2% to $1,771.14, following a three-year high in the previous session. Both metals, heavily used in automotive catalytic converters, have surged on tight supply, tariff uncertainty, and rotation from gold investment demand. Platinum is up roughly 165% and palladium over 90% year-to-date.
Market Drivers and Outlook
Analysts highlight that low-interest-rate expectations, including two potential US rate cuts next year, are supporting non-yielding assets like gold and silver. Industrial demand, particularly in the US, has elevated platinum prices, while sanctions-related concerns prompted stockists to cover positions, further tightening supply.
Speculative activity, geopolitical uncertainties, and expectations of prolonged low interest rates continue to create a favorable environment for precious metals. Forecasts suggest gold could approach $5,000 per ounce in the first half of 2026, while silver may reach around $90.
Geopolitical Influences
Global events have added momentum to the rally. The US plans a “quarantine” of Venezuelan oil for two months and conducted strikes against militants in northwest Nigeria. Such developments heighten uncertainty and reinforce the appeal of safe-haven assets like gold, silver, and platinum.
Overall, the precious metals market is poised for continued gains as industrial demand, speculative trading, and geopolitical concerns combine to drive record-high prices. Investors are closely monitoring these trends, expecting volatility and opportunities in the near term.
